Syllabus (COMMERCE)

Course Type: MAJ-5

Semester: 4

Course Code: BBCOMMAJ05T

Course Title: Advance Cost Accounting

(L-P-Tu): 5-0-1

Credit: 6

Practical/Theory: Theory

Course Objective: The course aims to: 1. Enable students to analyse the various factors involved in Contract Costing and preparation of contract account; 2. Enable students to analyse & prepare Process Costing and prepare statement of marginal costs and calculation of various aspects thereof; 3. Impart knowledge about Marginal Costing, Standard Costing and Strategic Cost Management.

Learning Outcome: After completion of the course, learners will be able to: 1. Analyse various aspects of contract and prepare contract account; 2. Analyse & prepare process accounts; prepare statement of marginal costs and calculate various aspects of Marginal Costing; 3. Understand the marginal costing technique and apply them various managerial decisions; 4. Understand the standard costing technique and apply then in analysing of Material, Labour and Overhead Variances; 5. Understand Life Cycle Costing, Target Costing, Activity Based Cost Management.

Subject: Advanced Cost Accounting

Unit 1: Job Costing, Contract Costing and Service Costing (Lectures: 15)

Job Costing- job cost cards and database, collecting direct costs for each job. Attributing overheads to jobs; Application of job costing.

Contract Costing-Progress Payments; Retention money, Escalation Clause; Contract A/C and Balance Sheet.

Service Costing- Introduction- Transport Costing, Hotel Costing (Staff Canteen, Boiler and Hospital Costing-brief idea only).

Unit 2: Process Costing (Lectures:10 )

Process Costing-Meaning, Features, Process Vs Job Costing. Principles of cost ascertainment of materials, labour and overhead; Preparation of Process A/C with Normal and Abnormal Loss; Abnormal Gain.

Unit 3: C-V-P Analysis (Lectures:10 )

Cost-Volume-Profit Analysis- Introduction, Assumptions and their Limitations; Uses; Break-Even Analysis; BE Point and Margin of Safety; Angle of Incidence; Graphical Presentation of CVP; Profit Graph.

Unit 4: Marginal Costing: (Lectures: 15)

Management decision-Marginal Costing Vs Absorption Costing. Marginal costing technique; Marginal Cost and product pricing; Product Mix and Make or Buy decision; Shut Down decision (with simple problems).

Unit 5: Standard Costing (Lectures: 15)

Standard costs and Standard Costing; Uses & importance; Difference with budgetary control; Preliminary steps, classification of standards; Analysis of Material, Labour and Overhead Variances.

Unit 6: Strategic Cost Management: (Lectures: 10)

Strategic cost analysis and management, Life Cycle Costing, Target Costing, Activity Based Cost Management,

Reading References:

Arora, M.N., Cost Accounting: Principles and Practice, Vikas Publishing House.

Atkinson, Management Accounting, Pearson Education.
Chakravarty, A.K., Cost and Management Accountancy, New Central Book Agency, Kolkata. Drury, Colin, Management and Cost Accounting, Cengage Learning.

Dutta, Cost Accounting: Principles & Practice, Pearson Education.
Goel, Rajiv, Cost Accounting, International Book House, New Delhi.

Hanif; M., Modern Cost and Management Accounting, Mc-Graw Hill Education.

Horngren, Datar & Rajan, Cost Accounting, Pearson Education.

Jain S.P. & Narang K.L., Cost and Management Accounting, Kalyani Publishers.

Jhamb, H.V., Fundamentals of Cost Accounting, Ane Books, New Delhi.

Khan, M.Y. & Jain, S.P., Cost Accounting, Mc-Graw Hill Education.

Kishore, Ravi M., Cost Accounting, Taxamnn Publications.

Lal, Jawahar, Cost Accounting, Mc-Graw Hill Education.

Iyengar, S.P., Cost Accounting, Sultan Chand & Sons.

Maheshwari, S.N. & Mittal, S.N., Cost Accounting: Theory and Problems, Shri Mahavir Book Depot, New Delhi.

Mitra, J.K., Advanced Cost Accounting, New Age International.

Nigam, B.M., Lall & Jain, I.C., Cost Accounting: Principles and Practice. PHI Learning.

Paul, S.K., Practical Cost and Management Accounting, New Central Book Agency, Kolkata.

Pillai, R.S.N. & Bagavathi, V., Cost Accounting, S. Chand & Co.

Singh, Surender, Cost Accounting, Scholar Tech Press, New Delhi.

Tulsian, P.C., Tulsian, B. & Arora, M.N., Cost Accounting, S.Chand & Co.

Thukaram Rao, M.E., Cost Accounting, New Age International.